NewEnergyNews: WIND GETS BONUS TAX BENEFIT/

NewEnergyNews

Gleanings from the web and the world, condensed for convenience, illustrated for enlightenment, arranged for impact...

The challenge now: To make every day Earth Day.

YESTERDAY

THINGS-TO-THINK-ABOUT WEDNESDAY, August 23:

  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And The New Energy Boom
  • TTTA Wednesday-ORIGINAL REPORTING: The IRA And the EV Revolution
  • THE DAY BEFORE

  • Weekend Video: Coming Ocean Current Collapse Could Up Climate Crisis
  • Weekend Video: Impacts Of The Atlantic Meridional Overturning Current Collapse
  • Weekend Video: More Facts On The AMOC
  • THE DAY BEFORE THE DAY BEFORE

    WEEKEND VIDEOS, July 15-16:

  • Weekend Video: The Truth About China And The Climate Crisis
  • Weekend Video: Florida Insurance At The Climate Crisis Storm’s Eye
  • Weekend Video: The 9-1-1 On Rooftop Solar
  • THE DAY BEFORE THAT

    WEEKEND VIDEOS, July 8-9:

  • Weekend Video: Bill Nye Science Guy On The Climate Crisis
  • Weekend Video: The Changes Causing The Crisis
  • Weekend Video: A “Massive Global Solar Boom” Now
  • THE LAST DAY UP HERE

    WEEKEND VIDEOS, July 1-2:

  • The Global New Energy Boom Accelerates
  • Ukraine Faces The Climate Crisis While Fighting To Survive
  • Texas Heat And Politics Of Denial
  • --------------------------

    --------------------------

    Founding Editor Herman K. Trabish

    --------------------------

    --------------------------

    WEEKEND VIDEOS, June 17-18

  • Fixing The Power System
  • The Energy Storage Solution
  • New Energy Equity With Community Solar
  • Weekend Video: The Way Wind Can Help Win Wars
  • Weekend Video: New Support For Hydropower
  • Some details about NewEnergyNews and the man behind the curtain: Herman K. Trabish, Agua Dulce, CA., Doctor with my hands, Writer with my head, Student of New Energy and Human Experience with my heart

    email: herman@NewEnergyNews.net

    -------------------

    -------------------

      A tip of the NewEnergyNews cap to Phillip Garcia for crucial assistance in the design implementation of this site. Thanks, Phillip.

    -------------------

    Pay a visit to the HARRY BOYKOFF page at Basketball Reference, sponsored by NewEnergyNews and Oil In Their Blood.

  • ---------------
  • WEEKEND VIDEOS, August 24-26:
  • Happy One-Year Birthday, Inflation Reduction Act
  • The Virtual Power Plant Boom, Part 1
  • The Virtual Power Plant Boom, Part 2

    Friday, September 24, 2010

    WIND GETS BONUS TAX BENEFIT

    Wind Farm Owners To Benefit From Bonus Depreciation Provision Included In Small Jobs Bill
    Mark Del Franco, 21 September 2010 (North American Windpower)

    "A new provision in the Small Business Jobs Act passed by the Senate last week may mean big things for wind farm owners who place projects into service this year. The $42 billion bill is expected to create 500,000 jobs…[It] would also provide a slew of tax breaks to encourage investment. One such provision is bonus depreciation, which allows wind farm owners to write off more than 50% of the capital costs of building a wind farm in the year the project is commissioned. To take advantage of this tax break, project owners must commission the project before by the end of this year.

    "…Under existing [tax] rules, wind farms are written off over five years. The new bonus depreciation law would make wind farm writeoffs even quicker…The faster owners can write off capital costs, the more valuable the asset becomes…"


    The problem with tax-based incentives: Politics (and economic downturns) get in the way. (click to enlarge)

    [Eli Katz, partner, law firm Chadbourne & Parke:] "Congress has reached back into the tax-incentive bag and doled out a tax benefit that has been in and out of the tax code for the last decade…Faster tax depreciation makes tax-equity investments more valuable and is good for wind farm developers with large tax balance sheets that can use the tax benefits themselves. It also has implications for tax-equity investments that were closed earlier this year. Some project owners may choose to commission their projects this year in order to take advantage of this new rule."

    A good RES has all three. (click to enlarge)

    "President Obama is also pushing a larger bonus depreciation measure for 2011. Obama's proposal - which applies to almost all types of capital assets - would let owners take a 100% write off for any project built in 2011."

    [Eli Katz, partner, law firm Chadbourne & Parke:] "If this goes through, it would be the biggest form of bonus depreciation ever enacted…If you believe that tax incentives are the way to turbo-charge this business, then this is certainly one way to do it…[but most] projects will still need to attract a tax-equity investor, and there is growing evidence that many large financial institutions have little tax appetite, and so, bonus depreciation may not be enough to get them off the sidelines, especially in a low-interest-rate environment where deferring taxes is less valuable…"

    0 Comments:

    Post a Comment

    << Home